The last working day before the weekend leaves some clarity for market participants. A stop of Bitcoin price in the range of USD 9300-9400 confirms our main scenario, which we constantly mentioned in our analyses. The price stopped near the purple price zone, which did not resist sellers attack twice last month.
Today, buyers and sellers are resting, dropping the price in a narrow range of consolidation, as it is after strong movements. At the moment, we do not see buyers changing the balance of power in the market. On the contrary, as long as they prove that they do not have enough volumes to start growth:
And even during the fall, we didn’t see buyers greedily buying at the price of USD 9300-9400. So, we suspect that an attempt to break through the purple price zone is possible. As the current price range was a critical point in our scenario before likely fall continuation to USD 8600, we want to consider another scenario, namely the continuation of price consolidation in the range of USD 9300-11,000:
The probability of this scenario is confirmed by volumes which on a daily timeframe are more like consolidation. In our opinion, buyers only need to take the initiative and back it up with volumes, and soon we will be able to see USD 11,000 again. However, let us repeat, the hints from buyers is not yet clear.
In today’s consolidation, Bitcoin buyers continue to close their positions and are unwilling to risk:
Sellers do the same:
However, if sellers felt themselves in complete dominance, they would have to increase their positions. Therefore, uncertainty the market sentiment may well be a good impetus for changing the local trend.
According to the wave analysis, sellers tested Fibonacci level 61.8%, from which there is a high probability of a rebound upwards at least to USD 10,000:
If Bitcoin buyers do not keep this price level, then it is possible to continue the fall to USD 7680 with a temporary stop at the price of USD 8600. Therefore, at least the price will stop near this price mark for a while. Let’s see what miracles await us for the weekend. Keep your hand on the pulse of Bitcoin prices with us, until next analysis!